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Sears files for bankruptcy

Sears Holdings announced Monday that it has filed for bankruptcy, marking a low point for the once prominent retail giant.

The company was unable to afford a $134 million debt payment that was due Monday and filed for Chapter 11 bankruptcy, which allows it to restructure its finances.

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Profitable Sears and K-Mart stores will remain open, and both brands' rewards programs will continue as normal, the company said. Another 142 stores that are deemed unprofitable will close by the end of the year.

The move was expected, and Sears Chairman Edward Lampert cast the bankruptcy filing as a financial restructuring that would ultimately strengthen the company's position.

"Over the last several years, we have worked hard to transform our business and unlock the value of our assets," Lampert said in a news release.

"While we have made progress, the plan has yet to deliver the results we have desired, and addressing the Company's immediate liquidity needs has impacted our efforts to become a profitable and more competitive retailer," he added.

The retailer has seen scores of its brick-and-mortar locations close in recent years as it faces growing financial losses. The Wall Street Journal reported that Sears still has nearly 900 stores in business.